This whole small business accounting software for a limited liability company can be written on excel spreadsheets which means all bookkeeping transactions are visible at the click of a button. Each excel workbook being arranged in 12 monthly worksheets. Prime data entry excel spreadsheets being provided for sales, purchases, cash, bank, savings account and credit card account.
Financial transactions such as sales or expenses are listed on the appropriate month. And should a change be necessary any item can be easily changed. This simple listing process is a definite advantage to non accountants as no previous bookkeeping or accountancy software knowledge is required.
Bank spreadsheets can be entered by listing the items that appear on the bank statement and include a box to enter the statement balance each month. The formulae within the excel spreadsheet then automatically checks that the entries made agree with the statement balance producing effective bank reconciliation. This feature that ensures entries are recorded accurately in the companies accounts.
From the lists of sales and purchases plus the bank statement entries all the information is automatically transferred to the financial accounts file. A trial balance with embedded formulae automating all the double entry accounting transactions. No entries are required from the user removing the need for accounting experience. The trial balance is purely an accounting solution, visible, transparent and contains an audit check to ensure the company accounts are accurate.
The financial accounting software file should contain an automated monthly profit and loss account to enable limited companies to track their financial performance and very important, the package also produces a balanced profit and loss account and balance sheet in the correct format for submission of the final accounts. This set of final accounts automatically gathering the financial information from the basic entries made with the final accounts also including the statutory notes required for a set of company accounts being published.
While quarterly vat returns are generated for vat registered business the accounting package is also suitable for non vat registered business. To produce a vat return clients open the vat returns file and select the vat quarter end date from a drop down menu and the figures for the vat return are automatically generated. The vat calculations can be disabled by non vat registered small businesses by changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.
The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation calculation are also automated being preset with depreciation percentages that can be changed as required.
The limited company corporation tax liability is calculated within the package in such a way that all the calculations; additions and deductions are both automated and visible. Capital allowances on both existing and new assets being shown on the corporation tax calculation.
Accountancy knowledge required
The limited liability company accounting software is based upon single entry of transactions requiring no accountancy or bookkeeping knowledge. All the accounting knowledge required to perform the double entry of transactions which is a required feature to produce a balance sheet automated through the accounting software formulae and linking structure. The company accounts package has a feature so that the figures for the previous year may be entered and lists of opening debtors and creditors recorded. A minimal level of accounting knowledge is required to correctly list the closing debtors and creditors and check the totals of those lists agrees with the automated balances shown on the company accounts balance sheet
Other features
The product has a stock control feature to monitor any stock losses. The limited company accounting software reviewed contained a wages interface that fully integrates the payroll software when the payroll files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries.
The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return. As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. The accounting software also works fine with an Open Source spreadsheet package.
Excel packages can be easier to use than database systems and produce the end products every small limited company requires in a small business accounting software package, automated accounts requiring no bookkeeping skills and no previous financial accountancy software experience with the valuable end product of a fully automated final set of accounts for the limited liability company.
Author Resource:-
Terry Cartwright, a qualified accountant in the UK, designs both Accounting Software on excel spreadsheets and Payroll Software for small to medium sized business providing a complete accounting solution and also supplies Company Formation packages for new limited liability companies
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